Cashing in on NHS pension

Lulu61

Hi, I realise there have been threads on the NHS pension issue, but not sure if I fit into some of these scenarios. Basically, I left the NHS in 2009. I'd worked since 2000, some of that time part time only. I've just reached 55, and have unfortunately just been made redundant (in a different field altogether). What I really need is to access some cash, and quick, and I want to cash in my pension and get a lump sum now, and not bother with the monthly pension payments etc when I'm 67. My husband has got a good pension and I'm not concerned about our future finances. Any one know offhand whether it's possible to cash it in? I know there will be a tax forfeit. Thanks in advance!

HappyHarry

Lulu61 wrote: »

Hi, I realise there have been threads on the NHS pension issue, but not sure if I fit into some of these scenarios. Basically, I left the NHS in 2009. I'd worked since 2000, some of that time part time only. I've just reached 55, and have unfortunately just been made redundant (in a different field altogether). What I really need is to access some cash, and quick, and I want to cash in my pension and get a lump sum now, and not bother with the monthly pension payments etc when I'm 67. My husband has got a good pension and I'm not concerned about our future finances. Any one know offhand whether it's possible to cash it in? I know there will be a tax forfeit. Thanks in advance!

It may seem bad news, but you can't cash in your NHS pension, as it is an unfunded defined benefit pension.

You will need to look elsewhere.

bigfreddiel

You may be able to take it early, but I think you may lose 5% income per year early, so if you are entitled to it at 60 you'll lose 25%.

Cheers fj

xylophone

http://www.nhsbsa.nhs.uk/Documents/Pensions/member_Deferred_Benefits_V2.0_07.2013.pdf

dunstonh

What I really need is to access some cash, and quick, and I want to cash in my pension and get a lump sum now, and not bother with the monthly pension payments etc when I'm 67.

You cant. The NHS scheme does not allow it.

I know there will be a tax forfeit.

There isnt as you cant do it.

xylophone

It may be possible to access the pension and receive a lump sum and regular monthly payments but be prepared for the actuarial reduction.

See link above.

You cannot transfer out from your unfunded Public Service scheme to a DC scheme.

http://www.nhsbsa.nhs.uk/Pensions/4210.aspx

Lulu61

Thanks every one. According to someone on the end of the phone, I can access it but with 15% reduction of the lump sum, and 21% reduction of the annual pension.

dunstonh

Lulu61 wrote: »

Thanks every one. According to someone on the end of the phone, I can access it but with 15% reduction of the lump sum, and 21% reduction of the annual pension.

That is costly.

maddyweb

I've just applied to access mine. Mine is 27% and 37%. But that's because my dates are very different to yours and fall under the scheme before it changed in 2008. Good luck! I need mine urgently too, but I think it takes 3 months to release